TEMPO.CO, Jakarta – The
domestic stock market experienced a significant increase following the
official declaration of the coalition of political parties supporting
Joko Widodo's candidacy in the upcoming presidential election. The
declaration encouraged investors to buy shares, pushing the Jakarta
Composite Index up by 70 points (1.4 percent) to 4,991.
Bank Mandiri's chief economist Destry
Damayanti said the gain was mainly the result of political sentiments
rather than economic data. "PDIP, NasDem, and PKB's declaration to
nominate Joko Widodo provided a political certainty. The market is
finally moving after being suspended by political uncertainties for the
last few days," Destry said yesterday.
The strengthening of the index and the
rupiah, Destry said, will not last long. The rapidly changing political
situations will affect the market. In addition, the index is predicted
to weaken once it reaches a high enough position.
A similar view was expressed by OSO
Securities' analyst Mohammad Alfi Syahrin. Alfi said that investors like
Jokowi as a political figure, so any support for theJakartagovernor
will be responded positively by the market. "Foreign investors will not
hesitate to re-enter the trading floor," he said.
Regarding the current political
constellation, deputy chair of the Indonesian Chamber of Commerce and
Industry Natsir Mansour said the market responded positively to Jokowi's
nomination. This, he said, is based on PDI-P's economic platform which
is considered pro-business. "PDI-P will boost growth and push for
equity," he said.
The index is predicted to stay on an
uptrend range of 4,967 to 5,055. Alfi said the JCI might also benefit
from listed companies' dividend payouts scheduled to take place this
month. He also said that the market uptrend is also caused by several
issuers' technical increases, suggesting investors to keep their eyes on
PGAS, BBNI, and BSDE.
BERNADETTE CHRISTINA | MEGEL JEKSON | ANGGA SUKMA | MUCHAMAD NAFI
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